For hedging it is very important that you look for pairs that have correlation with each other or belong to the same ecosystem. Just like I keep a hedge strategy in HIVE and STEEM, the reason is that both belong to the same ecosystem. If one pumps the other will also necessarily pump whether its speed is low or high but their correlation is quite strong.
In the same way if you also want to hedge then try to look for such coins whose ecosystem is the same and which have a strong correlation. Here I can also give you the example of metals in which Gold and Silver are two such metals that have a strong correlation. If Gold moves upward, Silver also moves upward and the only difference comes in their volatility. And this very gap becomes a way of profit for us.
LONGING HIVE, SHORTING STEEM
In my everyday strategy, sometimes I look at the HIVE and STEEM hedge, sometimes I look at the Gold and Silver hedge or sometimes I look for such coins among the gainers or losers that keep giving me a good long or short setup.
Just as I have already shared trading results with you people in this content where my win rate was 100 percent for yesterday.
Yesterday was a very good opportunity for me to hedge the HIVE and STEEM pair because strong momentum was seen. The movement of both was fast so it was a very good time to earn from these two.
LONGING SILVER AND SHORTING GOLD
But today I have continued my hedge strategy in Gold and Silver and currently my trade is open and I am holding it so that I can close it in profit.
Similarly, apart from this, in other coins that pump more or dump more I always look for a long or short setup. There are some particular things that are necessary to keep in mind so that your trade becomes successful.
The hedge strategy is very easy and simple, in which you simply have to long one coin and short the other.
The one whose upward momentum is strong you will simply long it. And the one whose momentum is weaker and which is in an overbought position you will simply open it in a short position.
In this way you can get a gap and get profit from it.
Before this what I used to do was hold both of them with layering but now it is not like that.
Now the plan has changed a little. What I will do is, after opening their positions I will check the swing low and swing high and wherever the TP and stop-loss look good I will set the TP or stop-loss of both these metals or crypto coins there, keep the trade and check its result.
This will minimize my risk of loss and in case of any extreme pump or dump, my portfolio will also remain protected.
RESULTS FOR YERTERDAY
Now let us review some of yesterday's results where I opened HIVE and STEEM in the first trade because STEEM was in a very overbought position so it was giving me a very good opportunity for a close position while on the other side HIVE was giving me a very good opportunity for a long.
Now my actual purpose is to hedge them. I want that when our portfolio comes into profit today, I will close them together.
So you can see how HIVE showed a very good dump and STEEM showed a very good dump and HIVE only dumped a little and overall my net profit became good.
Similarly in the second position again I opened a HIVE and STEEM position. Again by doing the same long and short I earned profit.
Then on NIL/USDT I got a very good ROI of 7.64 percent profit.
And then again I hedged another HIVE and STEEM where again STEEM was looking good to me on the short side and HIVE was looking good on the long side.
The decision was made in only four minutes and I got a net profit of $1.40.
And if I talk about today, the Silver and Gold positions are open in front of you.
The long position of Silver is looking very strong while Gold's position to move upward is stronger so that is why I have longed Silver and shorted Gold.
Now I will see what its result will be and I will share it with you people about this.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Thank you all for your time reading the content.
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